Medical Properties Trust investing $950 million in behavioral health facilities

Medical Properties Trust

Birmingham-based Medical Properties Trust today announced plans to acquire 18 inpatient behavioral health hospitals and an interest in Springstone LLC operations from Welsh, Carson, Anderson & Stowe for a total of $950 million.

The transaction is expected to close later this year, pending regulatory approvals.

The existing hospitals, plus additional facilities planned by Springstone, are expected to be master leased.

Immediate financing will come from MPT’s cash on hand, revolving credit and other arrangements, such as issuances of debt and equity securities.

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“The Springstone investments give MPT a major presence in the rapidly expanding United States behavioral health care market, which has been underserved in our society despite importance on the same level as acute and post-acute care hospitals,” said Edward Aldag Jr., MPT’s chairman, president and CEO.

“MPT’s acquisition of the 18 purpose-built inpatient facilities, much like our recent investment in the Priory portfolio in the United Kingdom, appropriately targets the highest level of acuity within the behavioral care continuum, and we believe that our investment in the operating company will result in additional attractive real estate opportunities.”

Management of the Springstone properties will stay the same, Aldag said, with Bill Wilcox as executive chairman, Phil Spencer as CEO and Greg Miller as CFO.

“We’re so appreciative of the job the management team did to build this business. We started this company from scratch 10 years ago and are incredibly proud to have built over 50 facilities, created more than 4,000 jobs, and treated tens of thousands of patients with the highest quality care,” said Brian Regan, head of healthcare and partner at WCAS. “It was important to us that the management team has the opportunity to be part of Springstone’s ownership and to continue leading the company and its employees to the next phases of growth.”

Philip Spencer, Springstone’s CEO, added, “Over the past decade, Springstone has helped tens of thousands who struggle with mental health and addiction challenges, thanks to the support of Welsh, Carson, Anderson & Stowe and the dedication of our team of compassionate professionals. We look forward to working with MPT to expand our behavioral healthcare model to serve even more communities.”

Founded in 2003, Medical Properties Trust is a self-advised real estate investment trust. Today, it owns 442 facilities with about 45,000 licensed beds in nine countries on four continents. It is one of Alabama’s few public companies and is traded on the New York Stock Exchange.

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